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As investors brace for a "hawkish"-leaning Sept FOMC, notwithstanding August CPI, progress seen on inflation since June FOMC

The September FOMC decision comes Wed at 2pm ET. Since Jackson Hole (8/26), markets have been on edge and investors have been bracing for more "hawkish" Fed commentary. This is best evidenced by the surge in yields (2Y and 10Y) and creeping higher of Fed peak expectations.

In short, investors are naturally nervous into the rate decision. But there are a few perspectives that should balance the negative bias by consensus:

if Fed raises +75bp (or even +100bp), this puts current Fed funds within...

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